When you are ready to buy (or sell) a stock, you place an
order with your broker. An order gives your broker the signal to buy or
sell a particular security. You can give your broker additional
instructions:

? Limit order. With this order, you instruct your
broker to buy or sell a stock at a specific price (or better). You would use a
limit order when the stock you are interested in is changing in price. This
prevents the broker from buying too high, or selling too low.

? Stop loss order. With this order, you instruct your
broker to sell a stock if it falls below a specified price. You would do this to prevent further
loss. You use a stop loss order if you are concerned that a stock you own
will fall in price.

? Good 'til canceled (GTC) or day order. When
placing a limit order or stop loss order, your broker will ask whether you want
it to be "good until it is canceled" or "canceled after the close of
business." This allows you to control when the order will be executed or
canceled.